TOKYO (Reuters) – Japan’s government will allocate 1.99 trillion yen ($13 billion) to support efforts to boost its chip industry in a supplementary budget for the current fiscal year.

Japan is a leading provider of chipmaking tools and materials that lost its edge in manufacturing in recent decades and is providing subsidies to chipmakers to build capacity.

Some of the funds are expected to be used to support Taiwanese chipmaker TSMC and chip foundry venture Rapidus, local media have reported.

Countries around the world are moving to strengthen control over the supply chain for chips, which are essential for the electronics, automotive and defence industries.

($1 = 151.3400 yen)

(Reporting by Tokyo newsroom; Editing by Chang-Ran Kim)

Brought to you by